Direct Investment Surveys: BE-10, 2009 Benchmark Survey of U.S. Direct Investment Abroad, 66232-66234 [E9-29732]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Economic Analysis
• Economic Analysis Bureau

[Federal Register Volume 74, Number 239 (Tuesday, December 15, 2009)]
[Rules and Regulations]
[Pages 66232-66234]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29732]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 090130089-91425-02]
RIN 0691-AA71


Direct Investment Surveys: BE-10, 2009 Benchmark Survey of U.S. 
Direct Investment Abroad

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends regulations of the Bureau of Economic 
Analysis (BEA), Department of Commerce, setting forth the reporting 
requirements for the 2009 BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad. The benchmark survey covers the U.S. direct 
investment abroad universe, and is BEA's most comprehensive survey of 
such investment in terms of subject matter. Benchmark surveys are 
conducted every 5 years. The changes to the 2009 benchmark survey 
include: (a) Changes in survey form design and reporting criteria to 
simplify the survey forms and improve response rates; and (b) 
modifications, deletions and additions of specific items on the survey 
forms. Some of the items that will no longer be collected are those 
that are now collected on BEA's surveys of international services.

DATES: This final rule will be effective on January 14, 2010.

FOR FURTHER INFORMATION CONTACT: David H. Galler, Chief, Direct 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; phone (202) 606-9835 or 
e-mail David.Galler@bea.gov.

SUPPLEMENTARY INFORMATION: In the September 30, 2009, Federal Register, 
74 FR 50150-50154, BEA published a notice of proposed rulemaking that 
set forth revised reporting criteria for the BE-10, Benchmark Survey of 
U.S. Direct Investment Abroad. No comments on the proposed rule were 
received. Thus, the proposed rule is adopted without change.
    This final rule amends 15 CFR 806.16 to set forth the reporting 
requirements for the BE-10, Benchmark Survey of U.S. Direct Investment 
Abroad--2009.

Description of Changes

    The changes to the benchmark survey include: (a) Changes in survey 
form design and reporting criteria to simplify the survey forms and 
improve response rates; and (b) modifications, deletions and additions 
of specific items on the survey forms. BEA is adding a question that 
will identify U.S. parent companies that use foreign manufacturing 
services to process or further manufacture goods that they own. Several 
items on cross-border services transactions between affiliated parties 
are no longer being collected on the benchmark survey because they are 
now collected on BEA's surveys of international services (BE-45, BE-
120, BE-125, and BE-185).
    BEA is discontinuing the use of separate forms for banks. The 
benchmark survey Form BE-10A BANK is being discontinued. Similarly, 
Form BE-10B BANK, report for foreign affiliates that are banks, is 
being discontinued. For 2009, bank and nonbank U.S. Reporters must file 
Form BE-10A, Report for U.S. Reporter. A U.S. Reporter must report all 
domestic operations on a fully consolidated basis. BEA is adding a 
question to Form BE-10A so it can continue to identify U.S. Reporters 
that are banks even if the majority of their revenues are generated by 
nonbanking activities.
    All foreign affiliates, regardless of industry, must be filed on 
one of three foreign affiliate forms--
    (a) Form BE-10B--report for majority-owned foreign affiliates with 
total assets, sales or gross operating revenues, or net income greater 
than $80 million, positive or negative; additional items must be filed 
for affiliates with assets, sales, or net income greater than $300 
million, positive or negative. Form BE-10B replaces the 2004 benchmark 
survey Forms BE-10B(LF) long form and BE-10B(SF) short form for 
reporting large majority-owned foreign affiliates;
    (b) Form BE-10C--report for majority-owned foreign affiliates with 
total assets, sales or gross operating revenues, or net income greater 
than $25 million, positive or negative, but for which no one of these 
items is greater than $80 million, positive or negative, and for 
minority-owned foreign affiliates with total assets, sales or gross 
operating revenues, or net income greater than $25 million, positive or 
negative. Form BE-10C replaces the 2004 benchmark survey Form BE-
10B(SF) short form for reporting small majority-owned foreign 
affiliates and minority-owned foreign affiliates; or
    (c) Form BE-10D--schedule for foreign affiliates with total assets, 
sales or gross operating revenues, and net income less than or equal to 
$25 million, positive or negative. Form BE-10D replaces the 2004 
benchmark survey Form BE-10B Mini and the 2004 BE-10A Supplement A 
schedule for reporting the smallest majority- and minority-owned 
foreign affiliates.
    BEA is also increasing the exemption level for reporting of 
selected items on Form BE-10A from $150 million to $300 million.

Survey Background

    The BEA conducts the BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad under the International Investment and Trade in 
Services Survey Act, 22 U.S.C. 3101-3108 (the Act). Section 4(b) of the 
Act provides that, with respect to United States direct investment 
abroad, ``the President shall conduct a benchmark survey covering year 
1982, a benchmark survey covering year 1989, and benchmark surveys 
covering every fifth year thereafter. In conducting surveys pursuant to 
this subsection, the ``President shall, among other things and to the 
extent he determines necessary and feasible--
    (1) Identify the location, nature, and magnitude of, and changes in 
total investment by any parent in each of its affiliates and the 
financial transactions

[[Page 66233]]

between any parent and each of its affiliates;
    (2) Obtain (A) information on the balance sheet of parents and 
affiliates and related financial data, (B) income statements, including 
the gross sales by primary line of business (with as much product line 
detail as is necessary and feasible) of parents and affiliates in each 
country in which they have significant operations, and (C) related 
information regarding trade, including trade in both goods and 
services, between a parent and each of its affiliates and between each 
parent or affiliate and any other person;
    (3) Collect employment data showing both the number of United 
States and foreign employees of each parent and affiliate and the 
levels of compensation, by country, industry, and skill level;
    (4) Obtain information on tax payments by parents and affiliates by 
country; and
    (5) Determine, by industry and country, the total dollar amount of 
research and development expenditures by each parent and affiliate, 
payments or other compensation for the transfer of technology between 
parents and their affiliates, and payments or other compensation 
received by parents or affiliates from the transfer of technology to 
other persons.''
    In section 3 of Executive Order 11961, as amended by Executive 
Orders 12318 and 12518, the President delegated responsibility for 
performing functions under the Act concerning direct investment to the 
Secretary of Commerce, who has redelegated it to BEA.
    The benchmark survey covers the U.S. direct investment abroad 
universe, and is BEA's most comprehensive survey of such investment in 
terms of subject matter. U.S. direct investment abroad is defined as 
the ownership or control, directly or indirectly, by one U.S. person of 
10 percent or more of the voting securities of an incorporated foreign 
business enterprise or an equivalent interest in an unincorporated 
foreign business enterprise, including a branch.
    The purpose of the benchmark survey is to obtain universe data on 
the financial and operating characteristics of, and on positions and 
transactions between, U.S. parent companies and their foreign 
affiliates. The data are needed to measure the size and economic 
significance of U.S. direct investment abroad, measure changes in such 
investment, and assess its impact on the U.S. and foreign economies. 
These data are used to derive current universe estimates of direct 
investment from sample data collected in other BEA surveys in 
nonbenchmark years. In particular, they would serve as benchmarks for 
the quarterly direct investment estimates included in the U.S. 
international transactions and national income and product accounts, 
and for annual estimates of the U.S. direct investment position abroad 
and of the operations of U.S. parent companies and their foreign 
affiliates.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of E.O. 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
assessment under E.O. 13132.

Paperwork Reduction Act

    The collection-of-information in this final rule has been submitted 
to the Office of Management and Budget (OMB) under the Paperwork 
Reduction Act (PRA). OMB approved the information collection under 
control number 0608-0049.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA unless that collection displays a currently 
valid OMB control number.
    The BE-10 survey is expected to result in the filing of reports 
from approximately 3,800 respondents. The respondent burden for this 
collection of information will vary from one company to another, but is 
estimated to average 121 hours per response, including time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Thus the total respondent burden for the 
2009 survey is estimated at 459,400 hours, compared to 428,750 hours 
estimated for the previous, 2004, survey. The increase in burden hours 
is associated with an increase in the respondent universe, and is 
largely offset by changes in survey form design and reporting criteria 
and information to be collected.
    Comments regarding the burden-hour estimates or any other aspects 
of the collection-of-information requirements contained in the final 
rule should be sent both to the Bureau of Economic Analysis via mail to 
U.S. Department of Commerce, Bureau of Economic Analysis, Office of the 
Chief, Direct Investment Division, BE-50, Washington, DC 20230; via e-
mail at David.Galler@bea.gov; or by FAX at (202) 606-5311, and to the 
Office of Management and Budget, O.I.R.A., Paperwork Reduction Project 
0608-0049, Attention PRA Desk Officer for BEA, via e-mail at 
pbugg@omb.eop.gov, or by FAX at (202) 395-7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration, under the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 605(b)), that this final rule will not have a significant 
economic impact on a substantial number of small entities. The factual 
basis for the certification was published in the proposed rule and is 
not repeated here. No comments were received regarding the economic 
impact of the rule. As a result, no final regulatory flexibility 
analysis was prepared.

List of Subjects in 15 CFR Part 806

    Economic statistics, Multinational corporations, Penalties, 
Reporting and recordkeeping requirements, U.S. investment abroad.

    Dated: Novemember 20, 2009.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.


0
For the reasons set forth in the preamble, BEA amends 15 CFR part 806 
as follows:

PART 806--DIRECT INVESTMENT SURVEYS

0
1. The authority citation for 15 CFR part 806 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 22 U.S.C. 3101-3108; E.O. 11961 (3 
CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 CFR, 1981 
Comp., p. 173) and E.O. 12518 (3 CFR, 1985 Comp., p. 348).



0
2. Section 806.16 is revised to read as follows:


Sec.  806.16  Rules and regulations for BE-10, Benchmark Survey of U.S. 
Direct Investment Abroad--2009.

    A BE-10, Benchmark Survey of U.S. Direct Investment Abroad will be 
conducted covering 2009. All legal authorities, provisions, 
definitions, and requirements contained in Sec.  806.1 through Sec.  
806.13 and Sec.  806.14(a) through (d) are applicable to this survey. 
Specific additional rules and regulations for the BE-10 survey are 
given in paragraphs (a) through (d) of this section. More detailed 
instructions are given on the report forms and instructions.

[[Page 66234]]

    (a) Response required. A response is required from persons subject 
to the reporting requirements of the BE-10, Benchmark Survey of U.S. 
Direct Investment Abroad--2009, contained herein, whether or not they 
are contacted by BEA. Also, a person, or their agent, that is contacted 
by BEA about reporting in this survey, either by sending them a report 
form or by written inquiry, must respond in writing pursuant to Sec.  
806.4. This may be accomplished by:
    (1) Certifying in writing, by the due date of the survey, to the 
fact that the person had no direct investment within the purview of the 
reporting requirements of the BE-10 survey;
    (2) Completing and returning the ``BE-10 Claim for Not Filing'' by 
the due date of the survey; or
    (3) Filing the properly completed BE-10 report (comprising Form BE-
10A and Form(s) BE-10B, BE-10C, and/or BE-10D) by May 28, 2010, or June 
30, 2010, as required.
    (b) Who must report. (1) A BE-10 report is required of any U.S. 
person that had a foreign affiliate--that is, that had direct or 
indirect ownership or control of at least 10 percent of the voting 
stock of an incorporated foreign business enterprise, or an equivalent 
interest in an unincorporated foreign business enterprise, including a 
branch--at any time during the U.S. person's 2009 fiscal year.
    (2) If the U.S. person had no foreign affiliates during its 2009 
fiscal year, a ``BE-10 Claim for Not Filing'' must be filed by the due 
date of the survey; no other forms in the survey are required. If the 
U.S. person had any foreign affiliates during its 2009 fiscal year, a 
BE-10 report is required and the U.S. person is a U.S. Reporter in this 
survey.
    (3) Reports are required even if the foreign business enterprise 
was established, acquired, seized, liquidated, sold, expropriated, or 
inactivated during the U.S. person's 2009 fiscal year.
    (4) The amount and type of data required to be reported vary 
according to the size of the U.S. Reporters or foreign affiliates, and, 
for foreign affiliates, whether they are majority-owned or minority-
owned by U.S. direct investors. For purposes of the BE-10 survey, a 
``majority-owned'' foreign affiliate is one in which the combined 
direct and indirect ownership interest of all U.S. parents of the 
foreign affiliate exceeds 50 percent; all other affiliates are referred 
to as ``minority-owned'' affiliates.
    (c) Forms to be filed--(1) Form BE-10A must be completed by a U.S. 
Reporter. If the U.S. Reporter is a corporation, Form BE-10A is 
required to cover the fully consolidated U.S. domestic business 
enterprise.
    (i) If for a U.S. Reporter any one of the following three items--
total assets, sales or gross operating revenues excluding sales taxes, 
or net income after provision for U.S. income taxes--was greater than 
$300 million (positive or negative) at any time during the Reporter's 
2009 fiscal year, the U.S. Reporter must file a complete Form BE-10A. 
It must also file Form(s) BE-10B, C, and/or D, as appropriate, for its 
foreign affiliates.
    (ii) If for a U.S. Reporter none of the three items listed in 
paragraph (c)(1)(i) of this section was greater than $300 million 
(positive or negative) at any time during the Reporter's 2009 fiscal 
year, the U.S. Reporter is required to file on Form BE-10A only certain 
items as designated on the form. It must also file Form(s) BE-10B, C, 
and/or D for its foreign affiliates.
    (2) Form BE-10B must be filed for each majority-owned foreign 
affiliate, whether held directly or indirectly, for which any of the 
following three items--total assets, sales or gross operating revenues 
excluding sales taxes, or net income after provision for foreign income 
taxes--was greater than $80 million (positive or negative) at any time 
during the affiliate's 2009 fiscal year. Additional items must be filed 
for affiliates with assets, sales, or net income greater than $300 
million (positive or negative).
    (3) Form BE-10C must be reported:
    (i) For each majority-owned foreign affiliate, whether held 
directly or indirectly, for which any one of the three items listed in 
paragraph (c)(2) of this section was greater than $25 million but for 
which none of these items was greater than $80 million (positive or 
negative), at any time during the affiliate's 2009 fiscal year, and
    (ii) For each minority-owned foreign affiliate, whether held 
directly or indirectly, for which any one of the three items listed in 
(c)(2) of this section was greater than $25 million (positive or 
negative), at any time during the affiliate's 2009 fiscal year.
    (4) Form BE-10D must be filed for majority- or minority-owned 
foreign affiliates, whether held directly or indirectly, for which none 
of the three items listed in paragraph (c)(2) of this section was 
greater than $25 million (positive or negative) at any time during the 
affiliate's 2009 fiscal year. Form BE-10D is a schedule; a U.S. 
Reporter would submit one or more pages of the form depending on the 
number of affiliates that are required to be filed on this form.
    (d) Due date. A fully completed and certified BE-10 report 
comprising Form BE-10A and Form(s) BE-10B, C, and/or D (as required) is 
due to be filed with BEA not later than May 28, 2010 for those U.S. 
Reporters filing fewer than 50, and June 30, 2010 for those U.S. 
Reporters filing 50 or more, foreign affiliate Forms BE-10B, C, and/or 
D. If the U.S. person had no foreign affiliates during its 2009 fiscal 
year, it must file a BE-10 Claim for Not Filing by May 28, 2010.

[FR Doc. E9-29732 Filed 12-14-09; 8:45 am]
BILLING CODE 3510-06-P